Chief executive quits Siemens as boardroom putsch looms

Siemens, Germany's biggest technology group, was plunged into a leadership crisis last night when the chief executive, Klaus Kleinfeld, resigned - just six days after Heinrich von Pierer was ousted as chairman.

His resignation, which takes effect in September, leaves Siemens rudderless and has raised fears that the scandal-hit group could be open to break-up raids by private equity marauders. Siemens' shares fell 5% in New York on the news.

Mr Kleinfeld, 49, who had delivered a 49% jump in pre-tax profits in the second half to just shy of €2bn (£1.4bn) only the day before, fell victim to a cabal of "old boys' club" bankers and industrialists, allied with trade union chiefs, on the supervisory board.

His opponents, marshalled by Josef Ackermann, head of Deutsche Bank, and backed by Gerhard Cromme, who takes over as chairman, wanted a fresh start at Siemens after a series of bribery and corruption scandals that have cost it €500m and seen senior managers put on trial.

They ostensibly feared that Mr Kleinfeld, who was cleared of any role in the scandals by internal auditors and external lawyers, could eventually be caught up in it. Their machinations have dominated the German media for the past two days.

Mr Kleinfeld, who led Siemens for two years and has been carrying out an extensive restructuring, including the sale of underperforming divisions, was said by one friend to be "clean, untainted and, what's more, a superb leader". He added: "This can only damage the company."

He said in a statement that he had been unwilling to tolerate further uncertainty about his and the company's future after divisions had surfaced among board members about whether to renew his contract for a further five years. That was due to take place yesterday and had been viewed as a formality.

"The company needs clarity about its leadership. I have therefore decided not to make myself available for an extension of my contract. The company must have complete freedom of action," he said.

His shock move, countering a putsch by his opponents, leaves Siemens searching for a new chief executive, with the finance director, Joe Kaeser, only recently in the post after the ousting of his predecessor, a close von Pierer associate.

Among those touted for the job are Wolfgang Reitzle, a former BMW and Ford executive who has been running Linde, the industrial gases group. Another candidate is Wolfgang Bernhard, a former Chrysler executive.